The suit, filed in Seminole Circuit Court here, wants to bar the city from temporarily running the agency and from appointing new members to the agency, actions the U.S. Department of Housing and Urban Development is currently trying to coordinate.
HUD owns and funds 450 units in six buildings rented to low-income families in this blue-collar city of 37,000 residents, 30 miles north of Downtown Orlando.
Authority executive director Timothy D. Hudson has resigned amid allegations by HUD that he and board members ran the authority's operations inefficiently and at times in violation of HUD guidelines.
HUD's civil investigators spent six months combing the authority's books for improperly spent items. They found $750,000 was spent without HUD authorization and ordered the housing board to return the money.
Now HUD's criminal investigators are checking the authority's computer and paper records for suspected fraud and theft of federal funds. HUD and the FBI raided the authority's offices two weeks ago and cleaned out the entire premises.
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